Customers complained they had been unable to contact Villa Parade and were concerned about 'confusing' messages which Villa Parade had been posting on its social media channels.

Jennifer Wright, of Matlock, Derbyshire, spend weeks chasing a refund for her son Andrew after his booking for a villa in the historic town of Pollença.

Ms Wright said: "It's a relief in a way because at least we know where we stand.

"If it's not of their making we feel sorry for them but it doesn't help people who are out of pocket.

"I'm sure we'll get our money back it's just how slow the process is going to be."

Valerie McCann, of Caernarfon, booked a holiday for herself and eight relatives in Pollenca.

She said: "Three days ago Villa Parade were offering me other accommodation, saying the flights were ok and we could have a refund. "Like everyone else I'm pretty disgusted."

ABTA is setting up a special "travel clinic" to advise many of the holidaymakers who have paid out for flights or holidays.

The company has spent years renting out villas, mainly in Spain and Portugal.

ABTA say there around 1,300 bookings for future holidays with villa accommodation only.

What ABTA say

Any customers who have booked this type of arrangement directly with Air Parade Ltd can get all the information to make a claim by going to ABTA's Travel Clinic and a refund for the villa accommodation will be arranged.

The watchdog says there are around 400 forward bookings for flight-packages that will be protected by its ATOL cover.

In addition there are around 300 forward bookings where Air Parade provided the accommodation via another company.

Customers should contact the company they used to book the accommodation and they will be looked after by that company, who will either advise that their holiday can go ahead, arrange an alternative booking, or arrange a refund.

In a small number of bookings Air Parade was acting as an agent for other travel providers.

Any customer who made a booking through Air Parade but whose accommodation or travel is being supplied by another company (the travel provider) should contact the travel provider in the first instance.

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